SPAC Stock CCXX has a definitive agreement to merge with MultiPlan. MultiPlan’s has a platform that is used by insurance companies such as United Health Group Inc, to find cost savings in health care claims. MultiPlan uses its proprietary tech in algorithms to find nearly $20 billion in medical cost savings on an annual basis. It takes a percentage of those savings as revenue, typically between 5 cents and 13 cents on the dollar.
The capital raised from the merger combined with Churchill’s expertise, will allow MultiPlan to continue to enhance its core offerings to payers through a significant increase in its data analytics platform. The value MultiPlan provides is to more than 700 payers, with their 60 million consumers and MultiPlan’s 1.2 million providers that serve them.
The merger will better position MultiPlan to capitalize on the entire $50 billion dollar market surrounding the space, rather than its current subset of $8 billion.
- Initial enterprise value for MultiPlan of approximately $11 billion
- Approximately 12.9x estimated 2021 Adjusted EBITDA
- Merger Will Deliver Financial Flexibility to Expand MultiPlan’s Significant Growth Opportunities
- Current MultiPlan Management Will Continue to Lead the Company
- Transaction Includes $1.3 Billion Fully Committed Common Stock at $10 Per Share and $1.3 Billion Convertible Debt, Convertible at $13 Per Share
- Expected to merge sometime in October of 2020
MuktiPlan CEO Mark Tabak Said This About The SPAC CCXX Merger
Mark Tabak, CEO of MultiPlan, stated, “I’m tremendously proud of the role MultiPlan plays in driving order, efficiency and fairness in healthcare payments. This transaction allows us to create payer value beyond the tech-enabled cost management and payment integrity services we offer today. As a public company, MultiPlan will have greater strategic and financial flexibility, making it better equipped to expand organically, through adjacent acquisitions and by investing in new technologies. We will deliver even more value for healthcare payers in particular, but also for their consumers and providers.”
Is SPAC CCXX Stock A Buy?
Considering MultiPlan is a tech based company in the healthcare sector it is likely investors are over looking this with all the hype centered around the electric vehicle EV space. Do your own due diligence but it is likely when the merger takes place in October with Churchill Capital Corp III ( CCXX ) the stock price will see an initial boost on the IPO.
What Is A SPAC Stock ?
A SPAC stock is defined as a “special purpose acquisition company” sometimes called a blank-check company these are stocks with no commercial operations that are formed to raise capital through an IPO for the purpose of acquiring an existing company. Read More Here
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